FATCA Automatic Exchanges for Non-Resident LLCs: Current Rules and Upcoming Changes

[Lekstadt]

I'm trying to get a clear understanding of how FATCA affects non-resident LLCs and their beneficial owners, especially regarding automatic exchanges of information between the U.S. and countries that have signed Intergovernmental Agreements (IGAs). I know personal accounts with over $10 in interest are automatically reported, but what about LLCs? How does FinCEN factor into this, and what are the current reporting thresholds?

Also, I've heard that under CRS, certain EMI with foreign IBANs (depending on where you live don’t report the accounts unless the balance exceeds €50,000 at the end of the year. Is this a myth, is this accurate? How does this compare to FATCA’s requirements? I know the information exchange isn't necessarily reciprocal, but at the very least, it would be nice to know every instance that gets both personal and LLCs business accounts reported automatically.

Are there any changes or updates coming next year or in the near future regarding this? Any insights would be great!

 

[EliasIT]

Also, I've heard that under CRS, certain EMI with foreign IBANs (depending on where you live don’t report the accounts unless the balance exceeds €50,000 at the end of the year.

Those who say this have never experienced being chased by the tax authorities; it’s a myth. I’ve written about it in countless threads already. Everything I have has been reported to the local tax authorities, including accounts that had a zero balance at the end of the year or no activity at all.

 

[JackAlabama]

I'm trying to get a clear understanding of how FATCA affects non-resident LLCs and their beneficial owners, especially regarding automatic exchanges of information between the U.S. and countries that have signed Intergovernmental Agreements (IGAs). I know personal accounts with over $10 in interest are automatically reported, but what about LLCs? How does FinCEN factor into this, and what are the current reporting thresholds?

Also, I've heard that under CRS, certain EMI with foreign IBANs (depending on where you live don’t report the accounts unless the balance exceeds €50,000 at the end of the year. Is this a myth, is this accurate? How does this compare to FATCA’s requirements? I know the information exchange isn't necessarily reciprocal, but at the very least, it would be nice to know every instance that gets both personal and LLCs business accounts reported automatically.

Are there any changes or updates coming next year or in the near future regarding this? Any insights would be great!

they can always report to your passport country if they want to. A few banks specifically wanted my passport tax id and an address in home country, even tho me living elsewhere and having proper residence visa available.
So just make sure youre out where your passport is from and it doesn't matter. It also helps if you have an uninteresting balance and flow such that the gov employees feel pity about your meager financial status.

 

[Lekstadt]

Those who say this have never experienced being chased by the tax authorities; it’s a myth. I’ve written about it in countless threads already. Everything I have has been reported to the local tax authorities, including accounts that had a zero balance at the end of the year or no activity at all.

But were those accounts foreign bank accounts or EMIs? They always know everything local, of course. I have an European friend who lives in South West Europe and the tax agency didn't accept one of his accounts when trying to file taxes using some search feature they have. That probably means they were unaware of the existence of those accounts. This was with Wise a few years back. They did accept however Revolut, because, at the time, it already had a local IBAN. it probably depends on the country, but I can't really see why any US bank would bother to send automatic reports over anything to an overseas country if FATCA doesn't make them unless the balance is insanely high. If the tax residency country requests the information, sure, but I am mainly asking about automatic reporting.

 

[Forester]

I'm trying to get a clear understanding of how FATCA affects non-resident LLCs and their beneficial owners, especially regarding automatic exchanges of information between the U.S. and countries that have signed Intergovernmental Agreements (IGAs). I know personal accounts with over $10 in interest are automatically reported, but what about LLCs? How does FinCEN factor into this, and what are the current reporting thresholds?

FATCA is not reciprocal – in reality. However it is not recommendable to rely on it. It can also depend on the counterpart country. I possess no more detailed information, though.

Also, I've heard that under CRS, certain EMI with foreign IBANs (depending on where you live don’t report the accounts unless the balance exceeds €50,000 at the end of the year. Is this a myth, is this accurate?

Never heard about this.

It is known that according to the DAC8, the 7th amendment to the Directive on Administrative Cooperation (exactly Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU), all EU-operating EMIs are considered Reporting Financial Institutions under CRS effectively onwards 2026-01-01. Reporting will concern all accounts, unless 90-day rolling average balance does not exceed USD 10,000 at any day during the year.
It's the future.
It is expectable that most non-EU EMIs will follow this.

As of now, some EMIs, reportedly, claim not to report; some openly claim that they report; but the vast majority is reticent about this. (Of course, it is recommendable to act as if all reported.)

How does this compare to FATCA’s requirements?

FATCA and AEOI (CRS) are completely independent.

Are there any changes or updates coming next year or in the near future regarding this?

See above.

 

[Lekstadt]

FATCA is not reciprocal – in reality. However it is not recommendable to rely on it. It can also depend on the counterpart country. I possess no more detailed information, though.



Never heard about this.

It is known that according to the DAC8, the 7th amendment to the Directive on Administrative Cooperation (exactly Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU), all EU-operating EMIs are considered Reporting Financial Institutions under CRS effectively onwards 2026-01-01. Reporting will concern all accounts, unless 90-day rolling average balance does not exceed USD 10,000 at any day during the year.
It's the future.
It is expectable that most non-EU EMIs will follow this.

As of now, some EMIs, reportedly, claim not to report; some openly claim that they report; but the vast majority is reticent about this. (Of course, it is recommendable to act as if all reported.)


FATCA and AEOI (CRS) are completely independent.


See above.

Thank you so much. Not sure how far I can disclose, but many people like me live in countries such as mine, which is uh... So (much) pain, if you know what I mean? I personally would never rely on a EMI not to report information either. The only reason I mentioned this is because if the CRS has thresholds such as the $10000 threshold, how thorough could FATCA be when it comes to automatically reporting non-resident beneficial owners of US LLCs and their business bank accounts, does that make sense? I am also concerned about the implications of FinCen and the CTA.

 

[Forester]

Thank you so much.

You are welcome.

The only reason I mentioned this is because if the CRS has thresholds such as the $10000 threshold, how thorough could FATCA be when it comes to automatically reporting non-resident beneficial owners of US LLCs and their business bank accounts, does that make sense?

Hopefully I understand your situation (I've looked also at your another threads in a glance).

Yet be advised that considering any relations between FATCA and AEOI/CRS does not make sense. Again, they are completely independent; and Uncle Sam does not care what OECD thinks about some issue.

I am also concerned about the implications of FinCen and the CTA.

I do not understand well what you are interested in, I am afraid...

 

[Lekstadt]

You are welcome.


Hopefully I understand your situation (I've looked also at your another threads in a glance).

Yet be advised that considering any relations between FATCA and AEOI/CRS does not make sense. Again, they are completely independent; and Uncle Sam does not care what OECD thinks about some issue.



I do not understand well what you are interested in, I am afraid...

I am aware that FATCA and CRS are completely independent. When I talk about FinCen and the CTA, I refer to recent changes and how they keep tightening the grip when it comes to all the information they gather and might disclose, no matter how anonymous the LLC is. The question is: Would Mercury notify automatically the foreign (IGA) country where the beneficial owner resides via FATCA about the LLC business account (account number, balance, transactions...)?

 

[Forester]

The question is: Would Mercury notify automatically the foreign (IGA) country where the beneficial owner resides via FATCA about the LLC business account (account number, balance, transactions...)?

Re-read this FATCA Automatic Exchanges for Non-Resident LLCs: Current Rules and Upcoming Changes
(And even if the current answer was no, it would be possible to happen anytime and without any announcement.)

 

[khila]

Re-read this FATCA Automatic Exchanges for Non-Resident LLCs: Current Rules and Upcoming Changes
(And even if the current answer was no, it would be possible to happen anytime and without any announcement.)

I have a similar question. For my company in UAE I opened account in Puerto Rico. Can I expect my bank to send information to UAE?